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South China Morning Post reports the YIrendai, majority owned by CreditEase, is looking to cross-sell its nearly 1m active users with an online management platform selling both funds and insurance online. The company believes there will be likely consolidation among the 2k p2p lenders, and expects those with the scale to enforce new tougher, regulations around the industry will be the ones to survive.
“However Creditease and its subsidiary Yirendai are better positioned to expand into other areas since they have very carefully developed, strong risk control practises already in place,” said Hsu. “Similar to other large e-commerce players in China, such as Alibaba and Tencent, Creditease collects large amounts of data that it uses to analyse customer credit worthiness.” Of course, wealth management is quickly turning into one of the most competitive areas of China’s finance industry, so as well as larger P2Ps, a number of other investment platforms, challenger banks, and international private banks are already targeting this space, as well as China’s traditional banks. “I don’t think anyone has worked out how to do online wealth management in China yet, no one has found the killer feature,” adds Fang.
